David Seymour unveils proposed reforms to the Overseas Investment Act. Video / NZ Herald
The Government is reforming the Overseas Investment Act as it seeks to attract more foreign investment amid a push for economic growth.
It also comes as the coalition parties grapple with whether to allow wealthy foreigners to buy homes in New Zealand, a move traditionally opposed by New Zealand First,but its position appears to be softening.
Associate Finance Minister David Seymour explained Cabinet had approved hastening decisions on overseas investment to within 15 days, unless they applied to residential land, farmland and fishing quotas. The same caveat applied to any applications that “could be contrary to New Zealand’s national interest”.
David Seymour talks to media about Government policy to relax foreign investment rules in New Zealand at Sylvia Park in central Auckland. Photo / Alex Burton
The proposed changes also included giving Land Information New Zealand a greater ability to grant consents without ministerial approval and better recognising the benefits overseas investments could provide to the local economy.
“Nearly every other developed country has less obstructive laws than New Zealand,” he said.
“They benefit from the flow of money and the ideas that come with overseas investment. If we are going to raise wages, we can’t afford to ignore the simple fact that our competitors gain money and know-how from outside their borders.”
The announcement followed several other Government measures intended to boost economic growth, which had become a priority for Prime Minister Christopher Luxon this year.
Earlier this month, Luxon announced changes to the foreign investor visa in a bid to attract further investment.
At the time, Luxon and his ministers acknowledged the inability of investors to purchase homes in New Zealand was a significant obstacle restricting the scale of potential investment.
NZ First leader Winston Peters had long opposed allowing foreign investors to buy New Zealand homes, but his position could be softening amid his acknowledgment that topic was currently being discussed within Cabinet.
Adam Pearse is a political reporter in the NZ Herald Press Gallery team, based at Parliament. He has worked for NZME since 2018, covering sport and health for the Northern Advocate in Whangārei before moving to the NZ Herald in Auckland, covering Covid-19 and crime.
